@RobertFreundLaw hm. this means they are, in fact, not legit.
can this double jeopardy as false advertising, since they claim they are legit when they are not legit?
talked to a brand.
60m+ in revenue. 1m in adjusted ebitda.
20+ million in wayflyer debt.
wanted to get my opinion on how to refinance it.
the daily payments are killing them.
see, wayflyer gets paid first, right out of shopify.
they take their daily rate, every day, no matter what.
he says it is strangling the biz.
they cant buy inventory, they cant invest in marketing.
wants a new lender to come in and buy the debt and then establish a more normal payment schedule.
I told him-
you are probably stuck with wayflyer
you might hate the terms. they might feel predatory
but NO ONE wants to loan a break even ecom brand tens of millions of dollars.
ecom brands are asset light. great to get started. horrible to underwrite.
as much as you hate the ecom lenders, they are the only people showing up to lend you anything.
why do people use cash advance places?
thats what they have access too
welcome to ecom
I got to check this out… it’s crazy. This concept can disrupt DTC financing.
@Seanfrank was just talking about this problem; but TLDR, starting ecomm companies that get meaningful loans is extremely hard.
Flexscale solves this in a very smart way but securing their down side with equity in convertible, a kind of collateral, but ultimately make money but providing loans that are paid back.
Kinda genius.
Ps - Alex and her husband are so smart. Your children will probably work for their children. It’s crazy.
Every day I see posts here from founders about how hard it is to finance DTC growth.
My husband just launched a product to solve that.
Flexscale gives you the flexibility of equity...without giving away a huge chunk of your company forever
If you want an intro, DM or comment
Trick new CRF450 converted with a super bee electric engine just got delivered.
Can rip around my neighborhood of old people and it doesn’t make a sound.
So insanely fun.
Man it’s funny you say that I’m in the market. I have 2 kids and 1 coming, I’m deciding if I get something to cruise in the ocean or something chill at first for local lakes.
Tough decisions.
The point is it’s about having fun w your family on the boat, not just the boat. Boats are sick tho.
"i'll be happy when i get it"
biggest trap ever that will devour your soul.
when i was broke i remember thinking that once I hit a certain point i would be happy - i would have everything, i could do whatever i wanted, how could i not be happy?
now, before i go any further - is it better to be rich than poor? absolutely.
but if you're empty and you tell yourself you'll be happy when you get rich, i've seen a lot of people have an identity crisis when they finally make it.
they were expecting the success and the money and the cars and the pj flights to make them happy, only to find out they were still exactly the same. nothing changed.
the key is to being happy with what you have, and playing the game because you love it and want to win. if you love what you have, getting rich is so awesome. if you're not happy with what you have, you won't be happy with what you get.